Paras Defence, HAL, MTAR Tech soar as Nifty India Defence index jumps 3%; key drivers explained

Shares of the defence companies were witnessing demand on Wednesday, June 17, with the Nifty India Defence index rising 3%.

After opening at the 9,151.65 level, the index touched an intraday high level of 9,403.25. As many as 17 stocks out of 19 were seen higher during the session. Except for Bharat Forge (-0.24%) and Aequs (-0.19%), all the other stocks were in green.

Paras Defence was the top contributor at the time of writing the article, soaring 14%, followed by Mtar Technologies (7.58%), Astra Microwave Products (5.24%), Data Patterns (4.93%) and Bharat Dynamics (4.46%).

Shares of Axiscades Technologies, Hindustan Aeronautics (HAL) and Garden Reach Shipbuilders & Engineers (GRSE) were also seen higher by 3.83%, 3.51%, and 3.22%, respectively. Further, Cochin Shipyard (2.88%), Solar Industries (2.55%), Mazagon Dock (2.1%), Dynamatic Technologies (1.89%), and Bharat Electronics (1.63%) were seen higher.

Here’s why defence stocks are gaining

India’s defence production

India's defence production touched an all-time high of ₹1.78 lakh crore in 2025-26, registering a growth of 15.6% over the previous fiscal, Defence Minister Rajnath Singh said on Wednesday.

In a post on X, Singh said the country's annual defence production rose to ₹1.78 lakh crore in FY26 from ₹1.54 lakh crore in 2024-25. “This milestone represents an impressive 15.6% growth over the previous fiscal year's output of ₹1.54 lakh crore and a staggering 110% increase since FY 2020-21, when the figure stood at ₹84,643 crore,” he added.

The defence minister credited the growth to the government's push for self-reliance in the sector and increased participation of domestic industry. "Under the inspiring leadership of PM Shri Narendra Modi, India's defence production is reaching new heights every year," Singh said.

According to the minister, indigenous defence production has increased nearly fourfold from ₹43,746 crore in 2013-14.

Reports of bids for ₹30,000 crore drone procurement programme

According to reports, the Defence Ministry received around 10 bids from Indian public and private sector firms for its over ₹30,000 crore project to procure 87 Medium-Altitude Long-Endurance (MALE) Unmanned Aerial Vehicles (UAVs) for the Indian Air Force.

Medium-Altitude Long-Endurance (MALE) Unmanned Aerial Vehicles (UAVs) are a type of military drone. MALE drones, as per available reports, are designed to operate at medium altitudes, typically between 10,000 and 30,000 feet, and can remain airborne for long durations—often more than 24 hours.

They are primarily used for intelligence, surveillance, reconnaissance (ISR), target tracking, border monitoring, and, in some cases, precision strikes.

According to a report by news agency ANI, which quoted defence officials, the firms that have participated in the project include Hindustan Aeronautics Limited, Solar Defence and Aerospace Limited, Adani Defence Systems Limited, Tata Advanced Systems Limited, Larsen and Toubro, and Raphe mPhibr Ltd.